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ECB raises rates to 1.5%

The European Central Bank confirmed a second interest rate rise on the same day the Bank of England voted to keep UK rates at their current level.

A rise of 25 basis points, the second for 2011, brought the EU’s interest rate to 1.5 per cent today as the BoE voted to keep the base rate at 0.5 per cent for the 28th month in a row.

Eurozone inflation reached 2.7 per cent for June, exceeding the ECB’s target rate of 2 per cent and prompting many to anticipate today’s interest rate rise.

Additionally, The interest rate on the marginal lending facility will be increased by 25bps to 2.25 per cent, while the interest rate on the deposit facility will also be increased by 25bps to 0.75 per cent.

All three changes to the monetary policy will take effect from July 13.

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